Keppel Ltd. · SGX:BN4
Keppel — Non-Deal Roadshow (November 2018)
18 slides from Keppel's roadshow presentation, Nov 15, 2018
Slide 1: Presentation to Investors
Presentation to Investors Tokyo 15-16 November 2018 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and
Slide 3: Shaping the Future
Shaping the Future Keppel is an eco-system of companies working together, with a refreshed mission, to deliver solutions for sustainable urbanisation in a fast-changing environment. Global economic growth Digitalisation, AI and robotics Solutions for Sustainable Urbanisation Ageing Disruptive popula
Slide 4: Keppel's Eco-System
Keppel’s Eco-System Ramping up Current Engines Offshore & Property Infrastructure Investments Marine Enlarging capital base Keppel Capital Building New Keppel Urban Engines Harnessing operational strengths Solutions of Growth New Engines for Growth Gas Value Chain Data Centres Smart Cities of the Fu
Slide 5: Creating & Capturing Sustainable Value
Creating & Capturing Sustainable Value Capturing value: Project-Based SALE & SERVICE DESIGN • Newbuilds, repair & upgrading projects & • Residential projects BUILD • WTE technology packages Revaluation • Offshore & Marine Operation & Divestment Fee-based • Property • Infrastructure OWN STABILISE TRU
Slide 6: Resilience Through Multi-Business Strategy
Resilience Through Multi-Business Strategy 9M 2018 net profit ▪ Net profit was S$809m S$809m, up 18% yoy ▪ EVA was S$384m 809 ▪ Annualised ROE was 9.3% 688 121 ▪ Free cash inflow of S$828m in 9M 2018 vs S$1,042m in 9M 2017 217 ▪ S$m 97 Net gearing was 0.41x at end-Sep 764 2018 vs 0.40x at end-Jun 20
Slide 7: Offshore & Marine
Offshore & Marine ▪ YTD new contracts of ~S$1.4b Net orderbooki comprising: S$4.4b as at end-Sep 2018 ▪ Gas-related solutions such as newbuild dual-fuel vessels and 4.4 an FSRU conversion 3.9 0.1 0.1 0.9 ▪ A midwater harsh environment 0.7 semi for the North Sea S$b 2.1 2.2 ▪ Develop rigs and yards o
Slide 8: Property
Property Committed investmentsi by ▪ Sale of 7,240 overseas homes worth ~S$2.4b to be recognised from 4Q 2018 geography, 2013-2017 through 2022 1,351 ▪ Grow recurring income from about 1.5 million smii of commercial GFA 1,022 1,060 ▪ Expanding presence in high-growth 786 regions in China and Vietnam
Slide 9: Infrastructure
Infrastructure Energy & Environmental Infrastructure ▪ Deepening track record as developer, owner & operator of major projects ▪ Keppel Marina East Desalination Plant over 50% completed ▪ HKIWMF in design and engineering phase Hong Kong Integrated Waste ▪ New projects won in Hong Kong and Singapore
Slide 10: Investments
Investments ▪ Keppel Capital targets to grow AUM to S$50b by 2022 from S$29b as at end-2017 ▪ Continues to expand asset classes under management with new initiatives Senior living Education real Australian retail estate fund property fund Acquiring a 50% stake in MoU with MindChamps MoU with Vicinit
Slide 11: Investments
Investments ▪ Sino-Singapore Tianjin Eco City ▪ Progressing well with sale of 2 residential land plots with total site area of 16.7 ha for RMB2.3b in 3Q 2018 ▪ Keppel Urban Solutions ▪ Master developer of large-scale mixed-use developments ▪ Best-in-class partners: Microsoft, Envision, ST Engineerin
Slide 12: Pre-Conditional Voluntary General Offer for M1
Pre-Conditional Voluntary General Offer for M1 ▪ Majority control allows Keppel and SPH to better support M1 management to transform the business ▪ Transaction is earnings accretive and complements Keppel’s mission as solutions provider for sustainable urbanisation ▪ Opportunities to create value th
Slide 13: Appendix: Financial Highlights
Appendix: Financial Highlights 13 13 13
Slide 14: Key Figures
Key Figures S$m FY 2017 FY 2016 % Chg 9M 2018 9M 2017 % Chg Revenue 5,964 6,767 (12) 4,288 4,419 (3) Operating Profit 760 795 (4) 996 630 58 Net Profit 815* 784 4 809 688 18 EPS 44.8cts* 43.2cts 4 44.6 37.9 18 EVA (220)* (140) 57 384 47 717 Free Cash Flow 1,802 540 234 828 1,042 (21) Increase Annual
Slide 15: Revenue by Segments
Revenue by Segments S$m FY 2017 % FY 2016 % 9M 2018 % 9M 2017 % Offshore & Marine 1,802 30 2,854 42 1,355 31 1,312 30 Property 1,782 30 2,035 30 967 23 1,350 31 Infrastructure 2,207 37 1,744 26 1,885 44 1,614 36 Investments 173 3 134 2 81 2 143 3 Total 5,964 100 6,767 100 4,288 100 4,419 100 15 15
Slide 16: Net Profit by Segments
Net Profit by Segments S$m FY 2017 % FY 2016 % 9M 2018 % 9M 2017 % Offshore & Marine (206)* (25) 29 4 (38) (5) 11 2 Property 650 80 620 79 764 95 363 53 Infrastructure 134 16 99 13 121 15 97 14 Investments 237 29 36 4 (38) (5) 217 31 Total 815* 100 784 100 809 100 688 100 * Excludes one-off financia
Slide 17: Net Profit & EPS
Net Profit & EPS Net profit (S$m) EPS (Cents) 1,846 1,885 102.3 103.8 1,525 84.0 685 726 38.0 39.9 405 22.3 457 414 363 815 809 25.3 22.9 20.0 44.8 44.6 784 43.2 143 127 226 7.9 6.9 12.4 347 406 397 225 265 19.2 22.3 21.9 12.4 14.6 246 13.6 205 171 11.3 9.4 357 339 360 252 337 19.8 18.7 19.8 13.9 18
Slide 18: ROE & Dividends
ROE & Dividends Additional Additional special dividend in specie cash dividend 30.0% ~9.5cts/share 5.0cts/share 100 90 25.0% 80 19.5% 18.8% 70 20.0% 60 15.0% 14.2% 50 48 40 9.3% 10.0% 40 6.9% 6.9%* 30 34 20 5.0% 22 20 10 10 12 12 10 0.0% 8 8 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017* 9M 2018 ROE Int